Bond God Jeff Gundlach Continues To Hollow Out His Old Firmhttp://www.businessinsider.com/gundlach-two-tcw-portfolio-managers-2013-1/comments
en-usWed, 31 Dec 1969 19:00:00 -0500Fri, 09 Dec 2016 10:31:49 -0500Sam Rohttp://www.businessinsider.com/c/50e440deeab8ea182500000dblack swanWed, 02 Jan 2013 09:14:54 -0500http://www.businessinsider.com/c/50e440deeab8ea182500000d
Gundlach predicted the rally in the Chinese and Japanese stock markets and put his money on those predictions. He made bank.
More:
Nov. 30, 2012 (Bloomberg)
"Most of DoubleLine’s assets are in the Total Return Bond Fund, which has 78 percent of its holdings in residential mortgage-backed securities -- both those guaranteed by the U.S. government and those that are not and have discounted prices.
He recommends buying hard assets: Gemstones, art and commercial real estate are high on his list. And DoubleLine has been buying the stocks of Chinese companies, U.S. natural gas producers and gold-mining firms because it considers them to be bargains.
Gundlach is so confident that phase three is coming that he’s planning to start an equities fund and a long-short hedge fund in early 2013 to offer investors additional protection from inflation. Gundlach, who says he buys assets only on the cheap, is also sitting on cash in anticipation of scooping up securities at fire-sale prices. Cash makes up 17 percent of his Total Return fund.
He says the amount of money investors can make in phase three will dwarf what they can earn now.
“I’m waiting for something to go kaboom,” Gundlach says in his office a week before the L.A. speech. “If phase three takes two years, it’s worth waiting for. The markets don’t have lots of opportunity now.”
As an investor, Gundlach goes on buying sprees when asset values plunge. After warning investors at a 2007 Morningstar conference that the subprime lending market was a “total unmitigated disaster,” he started to load up about a year later on the distressed mortgage-backed securities that most of the world was shunning.
The winning bet produced a return of 21.7 percent in the Total Return Bond Fund in 2009 through Dec. 4, when he was booted from TCW."http://www.businessinsider.com/c/50e43b8eeab8ea201800003cblack swanWed, 02 Jan 2013 08:52:14 -0500http://www.businessinsider.com/c/50e43b8eeab8ea201800003c
Jeff Gundlach makes very few mistakes. If he says the stock market is going to take off, then it is going to take off. The Fed and the taxpayers have absorbed the losses and sanitized most of the toxic MBS and CMBS from the TBTF banks, so look for those Wall Street banks stocks to take off. Obamacare will deliver a taxpayer mandated money flow to the medical-industrial-complex, so health care ETFs will most likely be money makers. The media hype is telling the world that the US is going to be competing with the Saudis in energy production, so the big, US based energy monopolies could be creating some stronger returns than they created in 2012.
Forget that the Main Street economies of Europe and the US are surviving on central bank money creation, because the financial engineering quant wonks that run the stock market are in the mood for some bigass payouts in 2013.